As you might know, Shanghai MicroPort EP MedTech Co., Ltd. (SHSE:688351) last week released its latest full-year, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with CN¥329m revenue coming in 3.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.012 missed the mark badly, arriving some 68% below what was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shanghai MicroPort EP MedTech after the latest results.
Taking into account the latest results, the most recent consensus for Shanghai MicroPort EP MedTech from six analysts is for revenues of CN¥463.3m in 2024. If met, it would imply a huge 41% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 409% to CN¥0.061. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥464.0m and earnings per share (EPS) of CN¥0.06 in 2024. So the consensus seems to have become somewhat more optimistic on Shanghai MicroPort EP MedTech's earnings potential following these results.
The consensus price target rose 8.2% to CN¥26.97, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Shanghai MicroPort EP MedTech, with the most bullish analyst valuing it at CN¥35.63 and the most bearish at CN¥18.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Shanghai MicroPort EP MedTech's growth to accelerate, with the forecast 41% annualised growth to the end of 2024 ranking favourably alongside historical growth of 22% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shanghai MicroPort EP MedTech to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Shanghai MicroPort EP MedTech following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Shanghai MicroPort EP MedTech going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Shanghai MicroPort EP MedTech , and understanding it should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.